​Chevron Phillips Chemical Company, a joint venture between Chevron Corp and Phillips 66, has offered to acquire Nova Chemicals Corp for more than $15 billion including debt, people familiar with the matter said on Thursday.

Chevron Phillips Chemical, one of the world’s top petrochemical producers, would gain scale and expand its footprint through the acquisition of Nova Chemicals, whose expandable polystyrene and resins are used in a range of industries, from construction to packaging.

Abu Dhabi’s sovereign wealth fund Mubadala Investment Co, the owner of Nova Chemicals, has been exploring a sale of the Canadian plastics maker since the start of the year, and there is no certainty that it will accept the offer from ​Chevron Phillips Chemical, the sources said.

Another bidder for Nova Chemicals may yet emerge, some of the sources added. Mubadala could also decide to keep a stake in Nova Chemicals in a deal, one of the sources added.

The sources asked not to be identified because the negotiations are confidential. Nova Chemicals, Mubadala, Chevron and Phillips 66 did not immediately respond to requests for comment.

Headquartered in Calgary, Nova Chemicals was founded in 1954. Over the years, it has diversified its business beyond foam packaging and insulation to foam beverage cups and containers.

Nova Chemicals reported earnings before interest, taxes, depreciation and amortization of $271 million in the first three months of 2019, down from $418 million a year earlier, according to its website.

Abu Dhabi acquired Nova Chemicals for $500 million in 2009 using its stated-owned International Petroleum Investment Co (IPIC), saving it from a financing restructuring due to its large debt. Since then, the company’s business has grown rapidly, taking advantage of the shale-driven natural resources boom in North America. Two years ago, Abu Dhabi merged IPIC with Mubadala, which manages over $225 billion in assets. The emirate has looked into consolidating its holdings and retrenching from some overseas businesses.

Founded in 2000, Chevron Phillips Chemical has 31 production facilities located in the United States, Singapore, Saudi Arabia, Qatar and Belgium. It had total revenue last year of $12 billion, according to its website.

Reporting by Greg Roumeliotis and Harry Brumpton in New York. Additional reporting by Saeed Azhar and Hadeel Al Sayegh in Dubai; editing by Lisa Shumaker.

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